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Sir Alan Sugar: Days of Disneyworld lending will not return
General News |
06/11/2009
The days of "unrealistic Disneyworld" lending are over and tough credit conditions are here to stay, Sir Alan Sugar has warned.
He believes that many people who have not experienced a recession before had become used to being able to obtain loans easily.
Sir Alan said: "The problem is that some younger people who have lived through the last ten years or so of business, and prior to that they may have just come from education, [so] they think the irresponsible manner in which the banks dealt is the norm."
This "unrealistic Disneyworld" of lending is no more and firms will have to get used to the fact banks have to operate as a business so they cannot lend to just anyone, he added.
However, it seems that Sir Alan might be preaching to the converted.
A recent study by Baker Tilly revealed that only 29 per cent of chief financial officers at mid-size UK firms see lack of credit as a cause for concern.
The company put this down to a growing acceptance of the difficulty of obtaining a loan rather than an easing in credit conditions.
Posted by John Lynes.
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